Compared to last week, western Canadian feeder cattle prices traded $2-$3 on either side of unchanged. Alberta packers were buying fed cattle on a dressed basis at $275 delivered; the Alberta fed market has rallied $10-$12 over the past couple weeks.
Secondly, U.S. feeder cattle prices have also rallied US$10-US$12 during the same time frame and feeder prices in the Midwest are at a sharp premium to Western Canada. These two factors have stabilized the Canadian feeder market.
Small packages of various quality characterized last week’s sales. Flesh levels were medium to heavy on average with colder temperatures bringing on the thicker butter. Most calves are coming straight off their mothers because forage supplies are tight and expensive. Finishing feedlots are the main buyers of these featherlight and heavier bawlers. Background lots that custom-feed are full. For heavier calves and yearlings, Manitoba markets are premium to Alberta because of the proximity to lower-priced feed grain regions of Ontario and Nebraska. The weaker Canadian dollar is having more of an effect on the market in the eastern Prairie regions.
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In central Alberta, larger-frame medium-flesh Simmental-blended steers on full health program averaging 740 lbs. were quoted at $184; in northwestern Manitoba, a small group of Charolais-based steers weighing 818 lbs. were valued at $187. In central Saskatchewan, a small group of mixed medium- to larger-frame Angus-based steers weighing 860 lbs. were valued at $170. In Manitoba, larger-frame Limo-blended steers with medium flesh averaging just over 900 lbs. were quoted at $175.
In central Alberta, Simmental-based steers weighing 525 lbs. on full health program with light forage diet were quoted at $220; north of Lethbridge, Angus-blended semi-weaned vaccinated calves averaging 625 lbs. were valued at $190 landed in the feedlot. North of Brandon, a small group of black steers straight off their mothers weighing a shade over 600 lbs. were quoted at $201.
Unfortunately, there are a fair amount of higher-quality bred cows and heifers coming on the market at basement-bottom prices. Certain auction markets are advertising large calf sales over the next couple weeks. Cow-calf producers continue to market feeder cattle sooner than normal which will tighten the supply later in winter and spring. Historically high hay prices are causing severe herd liquidation.
